Wealth Management
Technology stocks have had an excellent 2024, driven by the growing demand for AI services and digital transformation. Generative AI has spurred substantial investments from major tech companies like Alphabet, Meta, and Microsoft.
This surge in demand is also benefiting the semiconductor industry, with global sales expected to grow by 16% in 2024, reaching $611.2 billion. As the tech sector continues to thrive, the Nasdaq Composite has gained over 26% year-to-date, with the momentum expected to continue into 2025.
Stocks such as American Superconductor, Vertiv, Toast, and Impinj have seen impressive gains and are well-positioned to capitalize on the ongoing growth in AI and technology. These companies, with strong growth prospects, have become attractive investment opportunities amid the sector's favorable outlook.
Finsum: There still seems to be positive momentum for AI technology now but its medium-term outlook to be profitable still is suspect.
Bitcoin has had a rough stretch since Donald Trump's election victory, following a failed attempt to surpass the $100,000 mark. This four-day decline has reduced its value by roughly 8%, with Bitcoin trading at $91,615 on Tuesday morning in New York.
Meanwhile, the broader cryptocurrency market saw a dip in its $1 trillion gain since the November 5 election. The struggle to break through the $100,000 threshold might prompt traders to lock in profits, according to crypto analyst Noelle Acheson, though she believes this setback will be short-lived.
Despite the current dip, experts like Adrian Przelozny remain optimistic about the market’s future, expecting the bullish trend to persist in 2025. Trump's recent commitment to supporting crypto regulations and building a Bitcoin reserve has further fueled optimism.
Finsum: We remain cautious regarding bitcoin in the near term because the priority of these policy changes is still up in the air.
Donald Trump’s intention to introduce new tariffs on China, Canada, and Mexico starting on his first day in office is expected to spark significant turbulence in the currency markets, with experts warning that the impact on exchange rates could be far-reaching.
He revealed plans on Monday to impose a 25% tariff on imports from Canada and Mexico, a move that might violate an existing trade agreement, as well as an additional 10% levy on Chinese goods. These announcements quickly triggered sharp movements in the markets, with the U.S. dollar climbing against both the Mexican peso and the Canadian dollar.
Goldman Sachs advised investors to prepare for increased volatility in the foreign exchange markets, suggesting that such fluctuations could persist for an extended period due to the likelihood of tariffs remaining a key aspect of Trump’s strategy.
Finsum: Although Trump’s recent tariff announcements were lower than anticipated they could very well end up much different than the current announcement.
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As investors brace for the effects of Donald Trump's second term, Scott Sperling, Co-CEO of Thomas H. Lee Partners, offers a fresh outlook on the private equity scene. Mark Rowan, CEO of Apollo Global Management, hints at pursuing strategic acquisitions to bolster the firm's growth, while maintaining a strong focus on its existing operations.
Sperling foresees an uptick in economic expansion and reduced operational costs under the new administration, largely due to regulatory reforms. He reflects on the past few years, noting that stringent regulations have made deals like mergers and acquisitions more complex and costly.
Sperling also highlights the recent pressure on major tech companies, as government scrutiny and antitrust actions could stifle innovation in key sectors. Nonetheless, he remains hopeful that private equity will thrive, despite the challenges posed by shifting political dynamics
Finsum: We anticipate both regulatory and policy changes to be friendlier to P/E in the new administration.
The holidays can bring joy, but they often come with stress, from cleaning the house to managing busy schedules. This time of year can feel overwhelming, but there are ways to reduce the pressure and make the season more enjoyable. By following a few practical strategies, you can navigate the holiday chaos with more ease.
First, planning ahead is essential to avoid overlapping commitments and streamline tasks like meal prep and shopping. It's also important to set boundaries and feel comfortable saying no to some events or responsibilities.
Finally, budgeting wisely, creating a peaceful environment, and taking time for self-care, such as relaxing or enjoying a good laugh, can help reduce stress and improve your overall holiday experience.
Finsum: Family board games can be a great way to decompress while still maintaining engagement with one’s relatives.
The New River Gorge National Park in West Virginia is the latest addition to America’s national parks, showcasing 70,000 acres of rugged terrain and stunning waterfalls. This park offers a variety of activities, such as hiking, rock climbing, mountain biking, and whitewater rafting along the New River.
Visitors can also explore historic mining towns that tell the story of the Appalachian region. Notable features include a massive steel arch bridge spanning the New River, which is the longest of its kind in the Western Hemisphere.
New River Gorge is particularly beautiful in the fall when the foliage turns vibrant colors. As one of the newest national parks, it joins a growing list of recently established parks that highlight America’s diverse natural beauty.
Finsum: Avoiding peak season when visiting new national parks can be a great way to cut through the tourist activity.